Dunzo Sorting: Dunzo, a well-known platform for grocery delivery services, recently announced that it will reduce its workforce by 30%, resulting in the loss of around 300 jobs. The company took this decision after it raised a total of $75 million from investors including Google and Reliance Industries.
During a town hall meeting on 5 April, Kabir Biswas, the founder and CEO of Dunzo, informed his employees about the job losses and said that it aimed to change its business plan to become profitable ahead of the IPO.
Reportedly, the firm will only operate those dark stores that can be successful or are already under the new business model. It will also work in partnership with supermarkets and other retailers.
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Furthermore, Biswas informed the audience at the town hall that the decision was necessary for the company to reach profitability in the next 18 months. The move is aimed at helping the company generate profit, ahead of its anticipated initial public offering (IPO) in 2025.
This decision was taken keeping in mind that the company is currently facing increasing competition in the e-commerce business of India. This is due to Sharp’s efforts to ensure that consumers can receive their purchases in 15 minutes or less, as the demand for super-quick delivery of household items is increasing.
Earlier this year, in January, Dunzo had to lay off 60 to 80 employees, or about 3% of the entire staff. The corporation had closed many of its dark storefronts as a cost-saving strategy prior to making this decision.
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The delivery company is still in contact with potential investors such as the Abu Dhabi Investment Authority (ADIA), but funding may not materialize until the company becomes stable and specific criteria are satisfied.